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Is BitcoinCash Resurgence Incoming?
Recently, the CEO of Tesla, Elon Musk announced a Bitcoin payment option to buy Tesla cars. No doubt it paved the way for a mass bitcoin adoption, yet it also manifested another way of institutional accumulation. As Mr Musk stated clearly that BTC received as payments would be retained and not converted to fiat.
Therefore, a popular entrepreneur and Gamer Kim Dotcom approached Elon Musk and shed light on some aspects. The gamer said that most of the transactions in form of cash are below $10. And replacing bitcoin as a payment method would not be affordable as the median fees are quite high.
Fair point
— Elon Musk (@elonmusk) March 25, 2021
No doubt the bitcoin mempool size and count both are higher than that of bitcoin cash, still, the transaction fees are much lower. Hence BCH can serve more people as rightly pointed out by the gamer in his tweet,
“BCH is serving mass market, not just 1%,”,
To which Elon Musk replied, “Fair Point”.
DeFi Craze Diminishing!
The Bitcoin transaction fees are high compared o BCH, but Ethereum gas fees are always in cloud nine. The gas fees are the epicentre for many who migrated to different platforms like Pancake swap, Tron, etc from Uniswap.
Currently, most of the crypto assets, whether DeFi or NFT’s are plunging at a greater pace. Moreover, the DeFi tokens have shed their profits to such an extent that they are very far from their current ATH.
I think it's fair to say that DeFi is in the pain mode right now pic.twitter.com/xwdrukUlth
— Larry Cermak (@lawmaster) March 24, 2021
As the analyst mentioned in his tweet, most of the DeFi tokens are more than 20% away from their ATH. This clearly indicates the lessening craze of DeFi offlet which might be the increased tendency towards the major cryptos.
One of the other major reasons can also be the transaction fees on the Ethereum blockchain. Despite many other options are available, yet Uniswap leads the DEX platform along with Sushi Finance and Curve Finance.
Collectively, the transaction fees need to be considered if crypto payments are to be replaced by the current fiat system. Paying approximately $4-$5 transaction fees for a $10 payments makes no sense and hence the affordable platforms like BCH or TRX or BNB can be considered than BTC or ETH.